The Australian Securities Exchange (ASX) witnessed a significant surge propelled by the outstanding performance of major supermarkets on Friday. This surge was driven by Woolworths and Coles, two leading supermarket chains, following a positive report on their operations. The ASX 200 index closed higher, marking its best weekly gain in 2025.

The ASX200 index experienced a notable increase of 12.30 points, reaching 7,931.20 points by the end of Friday’s trading session. This surge, representing a 1.7% rise over four weeks, was complemented by the broader All Ordinaries index, which rose by 0.12% to 8,158.70 points. Additionally, the Australian dollar experienced a slight decline, trading at 62.85 US cents.

The rally in Woolworths and Coles shares was ignited by the release of the Australian Competition and Consumer Commission’s final report on high grocery prices. Although the report suggested no need for the breakup of these supermarket giants, it did provide 20 recommendations aimed at enhancing competition in the sector. The market responded positively to these findings, with Woolworths shares surging by 6.32% and Coles closing up by 4.85%, marking their best performance in four years. Metcash also experienced a strong day, with a 3.57% increase in its share price.

Consumer staples emerged as the top-performing sector, recording a 3.91% increase, while materials and healthcare sectors faced downturns. The healthcare sector, in particular, was impacted by concerns over potential implications of the Trump tariff plan on Australian pharmaceutical exports. This uncertainty led to varied performances among healthcare companies, with CSL falling by 0.52%, Sigma Healthcare trading 1.37% lower, and Pro Medicus witnessing a 6.47% decline.

Moreover, economic factors such as the fluctuation in iron ore and coal prices influenced the market dynamics. While BHP and Rio Tinto saw positive movements, Fortescue, BlueScope Steel, Mineral Resources, Yancoal, and Whitehaven Coal experienced declines. The market also responded to Premier Investment’s half-yearly results, with a significant drop in net profit after tax, yet the company’s share price surged by 3.85%.

In conclusion, the ASX’s remarkable performance driven by the supermarket sector’s success underscores the market’s responsiveness to key economic indicators and regulatory developments. The interplay of various sectors and external factors shapes the ASX’s trajectory, reflecting the dynamic nature of Australia’s financial landscape.